John Kuriyan, MBA’s Post

I called this one. Basically it is $26 billion all-cash buyout of Paramount Global. This offer came from Sony Pictures Entertainment and Apollo Global Management includes debt assumption and is above Paramount’s current $22 billion enterprise value. The proposal was sent to Paramount Global’s board, which is currently considering a merger proposal from Skydance Media that would keep the company public. Shari Redstone, Paramount’s controlling shareholder, has shown a preference for the Skydance proposal, supported by RedBird Capital Partners and KKR. I think Universal might potentially acquire Warner Bros in a similar fashion. Currently, many major film studios are in shits, with no immediate signs of improvement. I think we should expect mad summer. #hollywood #entertainment #film #filmmaking #tech #games #gaming #streaming #sony #wb #paramount #universal

Warner Bros. is down over 2% this morning as earnings are well short. Their broadcast ad revenue is down 8%, but streaming revenue is up 70%. WB's Max will now be part of "The Bundle" with Disney and Hulu, going live later this summer, per David Zaslav. Speaking of which, if this merger helps to get rid of Zaslav, I welcome it. WB just extended its deal with the NBA, but Zaslav is a bean-counter who counts $50 MM in his salary. Meanwhile, Sony wants to buy Paramount Global, but spin off Paramount +, CBS, and MTV; but they want to keep the film division. That strategy seems very foolish. Also, who would want to buy Paramount+ knowing that Sony owns the film studio?

From Reuters: Sony Pictures Entertainment and Apollo Global Management, Inc. are discussing making a joint bid for Paramount Global, according to a person familiar with the matter. The companies have yet to approach Paramount, which is in exclusive deal talks with Skydance Media, an independent studio led by David Ellison, though some investors have urged Paramount to explore other options. The competing bid, which is still being structured, would offer cash for all outstanding Paramount shares and take the company private, the source said. Sony would hold a majority stake in the joint venture and operate the media company, and its library of films, including such classics as "Star Trek," "Mission:Impossible" and "Indiana Jones," and #television characters like SpongeBob SquarePants, according to the source.[...] Apollo would likely assume control of the CBS #broadcast network and its local television stations, because of restrictions on foreign ownership of broadcast stations, the source said.[...] Skydance is negotiating separately to acquire National Amusements, a company that holds the Redstone family's controlling interest in Paramount, according to a person familiar with the deal terms. That transaction is contingent upon a Skydance-Paramount #merger. #mergersandacqusitions #ownership #TV #TVproduction

Taking a look at Sony's bid for Paramount I noticed this sweet graphic from Chartr detailing where its revenue came from in 2023. The theatrical revenue was short of $1B. Some things this data makes me consider: - I didn't realize how little revenue came from the films that these production dynasties compared to the full picture of their offerings. - Paramount has always been a top creator of films in my eyes, but the shift to streaming has made them change focuses slightly. Here are just a few films Paramount produced, helped produce, or distributed in 2023 that make this number surprising to me. The existing IPs of many of these films are so valuable, so it may point toward moviegoers looking for less sequels/original concepts. Transformers: Rise of the Beasts (co-produced with Skydance, Hasbro and others) Dungeons & Dragons: Honor Among Thieves (co-produced with Entertainment One, Hasbro and others) Indiana Jones and the Dial of Destiny (studio credit, co-production with The Walt Disney Company and others) Mission: Impossible – Dead Reckoning Part One (co-produced with Skydance and others) Teenage Mutant Ninja Turtles: Mutant Mayhem (co-produced with Nickelodeon and others) Killers of the Flower Moon (co-produced with Apple and others) For comparison, Disney had box office revenues of $1.89B (Statista) in 2023. There's more revenue in TV for Paramount than there is in Films at the moment. Is Paramount putting too many of their eggs into this basket? Looking at this from a bidders perspective, do you make a plan to grow the film category? #film #streamingwars #paramount

An interesting piece on the current battle for #Paramount. The best option for whoever takes over Paramount is to follow the #Sony strategy and become the "arms dealer" who monetises its content to the max, whether by selling to the highest bidder and / or monetising in ways such as premium short-form video. The idea Paramount can compete effectively with the other major streaming services is an illusion, not least because it does not have the balance sheet / cash resources. One other point which this piece touches on indirectly The Wall Street consensus is overestimating #Netflix's strengths given (1) its cash flow generation is minor compared with its peers; (2) it does not have an historical bank of content and (3) the ending of regular disclosure on subscriber numbers points to growing issues. As usual, this is not investment advice. Christopher Grimes Anna Nicolaou

NEWS OF THE DAY! Paramount's Potential Breakup: Sony and Apollo's $26 Billion Bid Sparks Regulatory Rumble 1.Paramount Global, a big entertainment company, might get split up if Sony Pictures Entertainment and Apollo Global Management buy it as per a report. 2.The plan involves selling CBS broadcast network, Paramount's cable channels, and its streaming service, Paramount+. 3.Paramount Pictures would join Sony's movie studio, while Sony and Apollo would keep Paramount's TV shows, movies, and intellectual property. 4.Sony and Apollo haven't discussed this plan with Paramount yet. 5.Shari Redstone, who owns Paramount, might not like the idea, but it's not a deal-breaker. 6.Splitting up Paramount could make it easier for the deal to pass regulations, especially because U.S. laws might not allow Sony to own a broadcast network entirely. 7.Paramount is also thinking about sharing its financial details with Sony and Apollo, which could help with their $26 billion buyout offer. =>Please follow Finplate and stay updated with the latest #mergersandacquisitions news. Thanks in advance. To read the news in detail, click below: https://lnkd.in/g_2mH8Pe To familiarize yourself with the context of this news, kindly click on the following link. https://lnkd.in/gqrBwDR9 

🚀 Breaking New Ground! Warner Bros. Discovery and The Walt Disney Company Announce Disney+ Hulu Max Bundle 🚀 Warner Bros. Discovery - https://lnkd.in/di3JZbvB and Disney - https://lnkd.in/d_5Bw9PD are challenging industry norms with their innovative Disney+ Hulu Max bundle. This partnership not only expands the horizons of streaming but also exemplifies how traditional competitors can collaborate to enhance viewer experience. Get ready for a diverse and rich content library, merging the strengths of both entertainment giants. Vitrina Insight: Such groundbreaking arrangements can stabilize and even invigorate the supply chain, providing crucial support during challenging industry phases. Discover more about this pathbreaking collaboration here: https://lnkd.in/dCd3Cau3 #Vitrina #VBN #StreamingInnovation #MediaPartnership #DisneyPlusHuluMax #WarnerBrosDiscovery #Disney #Entertainment #StreamingServices #IndustryCollaboration #ContentLibrary #ViewerExperience #SupplyChain #MediaIndustry #DigitalEntertainme

Skydance Makes a Move to Possibly Acquire Paramount https://ift.tt/Mcps43I According to many news outlets, National Amusements, the parent company of Paramount, has reached a provisional agreement with the media conglomerate Skydance for a potential merger. We are very excited that there will continue to be five major studios (Disney, Fox, WB, Paramount/Skydance, Sony) because filmmakers need all the buyers they can get in the marketplace. The more buyers, the more movies will get made. I was pretty worried after various outlets suggested that merger discussions between the two companies had ceased. But we're back on. A recent report by CNBC revealed that a preliminary deal has been presented to a Paramount committee for review and voting. The impetus for Paramount's search for a buyer stems from concerns raised by Wall Street and industry observers regarding its financial stability. In response, the company recently pledged to reduce its budget by half a trillion dollars. Yes, you read that right. No word on how they will do that yet. Paramount encompasses CBS, MTV, and Comedy Central, but there's a chance some of these will be sold off or cut to save the aforementioned money. We'll keep you updated as this story progresses. via No Film School https://ift.tt/5HbCcta July 02, 2024 at 07:49PM

More 🍿 please. Recently we wrote about Warner Bros. Entertainment $9.1B impairment. Paramount followed suit with their own impairment charge - $6B declared on Aug. 8. Investors and analysts in the entertainment space may want to pay close attention as the details of Paramount's goodwill impairment charge related to its TV networks business is eerily similar. Take a look at what we found in the footnote disclosure. https://zurl.co/Yhpc! #entertainment #networktv #financialanalysis #financialdata #goodwill #impairment

Paramount's shutting down Paramount Television Studios after 11 years, with 20-30 employees now updating their resumes. This move is part of Paramount Global's bigger cost-cutting mission—they're slashing 15% of their U.S. workforce to save about $500M. All PTVS projects will be absorbed by CBS Studios, consolidating their TV production under one roof. Meanwhile, Paramount+ is riding its own rollercoaster. It lost 2.8M subscribers in Q2, mostly due to exiting a South Korean deal and post-Super Bowl churn. But plot twist—they still managed to turn their first-ever streaming profit of $26M. As Paramount preps for its Skydance Media merger, they're clearly trying to streamline and adapt.